How to Get Paid Before Payday (Without a Payday Loan)

The idea behind the program is to pay employees for the work they’ve already done— and when they want it. Rather than waiting for their next payday, employees can use Earnin to go ahead and get paid for, say, the eight hours they already worked today.

It also works for salaried workers, as long as they’re not working from home or moving between several locations for work.

The idea sparked with Ram Palaniappan back in 2007 when he wrote a personal check to an employee to help them avoid racking up late fees. That’s when he realized how unfair the two-week pay cycle is, which was established back when everything was done manually.

So Palaniappan built a website to help his employees. Now, as of 2012, his idea has become available nationally.

Thousands of employees from Apple, Bank of America, Chipotle, Home Depot, Starbucks, Target, Whole Foods — you name it — are using the service to avoid getting wrapped up in late fees and overdraft fees. (Banks collected $6.4 billion in fees last year.)

You’ll create a username and password, as well as a touch ID and a four-digit PIN.

A note on security: Earnin has strict security measures, like 256-bit encryption. If you don’t know what that means, it’s on the same level of security — if not more secure — than what your online bank uses.

Next, you’ll need to give Earnin access to your location, so it can see when you’re coming and going to work — that you’re actually going. You can also opt in for notifications, so you’ll know when your pay is available.

Now you’ll want to set up your information, including the timesheet system your workplace uses, as well as your payday information. You’ll also need to connect your bank account (you know, so you can get paid).

Within one to two days, you’ll be good to go.

On your dashboard, you can see your Earnin earnings, which is based on how many hours you’ve put in. You can choose to cash out at any time.

Do note, though, that if you make, say, $10 an hour, your Earnin pay will likely be a little lower. That’s because it calculates in your taxes and deductions. That way, once payday comes around and Earnin automatically takes back what you’ve already claimed, it won’t leave you in the red.

And no, Earnin doesn’t charge interest or require fees. If you’re feeling kind, you can choose to tip the service, but the amount is your call.

If you’re in a crunch this month and want to go ahead and get paid for the hours you’ve already put in, Earnin can be the perfect temporary fix. (But remember, we want you to break this paycheck-to-paycheck cycle!)

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. She wishes this service had been around when she was in college…

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